Click to play videoPune/Mumbai: Bharat Forge, the biggest name in automotive component sector in the country has decided to lead by example in the economic downturn era.
Baba Kalyani, the CMD of Bharat Forge has decided to take a 20 per cent salary cut.
This is just one of the measures being adopted by Bharat Forge.
“My salary has been cut by 20 per cent,” said Kalyani in confirmation.
It is Baba Kalyani’s way of saying that in these tough times promoters have to stand up and take it on the chin as well. He has led to the way to severe cost cutting measures in his company.
Other senior executives have got similar salary reductions ranging between five to 20 per cent.
Hiring has been frozen and idle manpower is being shifted to non-auto business for optimum utilization.
The company is looking at streamlining operations and targeting reduction in working capital by 200 crore rupees.
“We are trying to reduce something like Rs 200 crore out of our working capital which gives Rs 20crore type of interest saving,” Kalyani added.
Substantial cost saving is also expected to come through reduction in energy consumption and waste.
Keeping in mind that the auto industry is facing one of its worst times ever, Bharat Forge has also decided to put its non-auto business on fast track.
Instead of 2012, it aims to achieve 40 per cent of its revenues from power, aerospace, oil and gas equipments by 2010.
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